Three industry associations support the move, hope it will yield tangible results
After introducing mandatory registration of contracts for export of non-basmati rice, the Indian government has decided to levy a token fee of ₹8 per tonne to promote the staple cereal as an India brand. Currently, several varieties are exported in bulk and they lose identity in the foreign soil as an Indian variety when packed by local importers for retail sales there.
Unlike the basmati industry, which got divided after a recent hike in the fee, all the three non-basmati exporters associations have supported the move of the government and are hopeful of yielding tangible results.
“It was a unanimous decision at the stakeholders consultation and all the three association supported the plan to register the contracts, before it was notified September 24,” said Mukesh Jain, president of The Rice Exporters Association CG.
Data collection
Recently, the Agricultural and Processed Food Products Export Development Authority (Apeda) hiked the registration fee of Bbasmati export contracts to ₹70/tonne from ₹30. Haryana-based exporters have reportedly expressed their reservations on the “steep” hike. But, official sources said that no basmati exporter expressed any reservation on the hikethough the initial proposal was to make it ₹100/tonne.
According to BV Krishna Rao, President of The Rice Exporters Association (TREA), since the basmati industry has been doing contract registration for a long time, it is good for Apeda to have some data on non-Basmati rice as well. By this registration of contract, Apeda will be able to track of the cargo going out and the countries who are buying, Rao said.
“The system is fine for non-Basmati as long as the verification of contract submitted is very fast. As Apeda’s intent is to use the contract registration fee for developing non-Basmati rice exports, it is a welcome step,” said Rao.
President of Indian Rice Exporters Federation (IREF) Prem Garg said: “The introduction of contract registration for non-Basmati rice exports is a welcome and progressive step. With Apeda implementing this system, exporters will now obtain an online registration certificate by paying a nominal fee of ₹8 per tonne. This fee is not a burden, but rather a contribution towards a Rice Trade Development Fund, which will be utilised to promote Indian rice in global markets.”
Enhance credibility
Garg, who is also Chairman of Shri Lal Mahal group, said this new mechanism will help establish better monitoring and control over the actual quantity of rice being exported, as well as create a comprehensive database of export destinations. “Such transparency will enhance the credibility of India’s rice trade and provide a strong foundation for policy planning,” he said.
In case of any dispute or default — whether from a buyer or a supplier — the registration records will enable both parties to approach IREF, he said adding the trade body will take up such matters with APEDA to safeguard the interest of exporters.
On IREF’s request, Apeda officials will be conducting an awareness seminar to guide exporters through the new registration process, ensuring smooth compliance and wider participation.
Jain said recently 2,000 containers of non-basmati rice were detailed in some countries. This issue was resolved through Apeda’s intervention and with the new system, exporters’ concerns will be easy to resolve with proper documentation.
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